Viacom Sees 14% Ad Growth in Q3

For the third quarter of the year, Viacom reported revenues increased 10% to $6.3 billion from $5.7 billion and operating income increased to $1.3 billion from $194 million in the same quarter last year, with higher revenues and operating income in every segment and a 14% overall increase in advertising revenues, led by the strength of the company's broadcast and cable networks, and television and radio stations. Infinity revenues increased 6%, driven primarily by 10% growth in radio.Viacom reported net earnings of $640 million, or $.36 per diluted share, for the third quarter of 2002 compared with a net loss of $190 million, or a loss of $.11 per diluted share, for the third quarter of 2001. The company's operating income before depreciation and amortization in Q3 increased 56% to $1.5 billion from $977 million in the third quarter of 2001. Free cash flow for the third quarter of 2002 was $214 million, bringing free cash flow to $1.62 billion for the first nine months of 2002. Mel Karmazin, President and Chief Operating Officer of Viacom, said, "Our record third quarter results demonstrate the underlying vibrancy of our core businesses, the continued strengthening of ad sales, and the strategic validity and superior execution of the Viacom/CBS merger. Viacom turned in the best third quarter in its history, and the pacings in our advertising-supported businesses continue to be strong in the fourth quarter. In addition, Viacom's $1.62 billion in free cash flow for the first nine months of 2002 exceeded free cash flow for the same period last year." In the fourth quarter, the company expects to deliver in excess of 20% growth in earnings per share, operating income and EBITDA versus the same quarter last year.